Categories
Archives
News Home > Non-Profit Formation > News Detail
Non-Profit Formation
Sometimes, a nonprofit incorporation may not want to classify itself as a 501(c)(3) tax exempt organization. Although each organization has its own motivation behind the business choices that it makes, this particular move could put a nonprofit in jeopardy of securing government grants and funding. However, many nonprofits that refrain from filing as 501(c)(3) can find funding via a fiscal sponsor.
"The sponsorship mechanism enables groups to organize around societal concerns without having to incorporate," Jonathan Spack wrote for the website AllBusiness.
"It provides an infrastructure that nurtures new leadership, and it can help start-ups organize to challenge conventional practices and approaches to addressing unmet societal needs. It also offers a way to manage specialized responses to cultural communities. In other words, fiscal sponsorships can be a real boon to the fluidity, innovative capacity and diversity of the community development and nonprofit sector," he added,
When a charitable organization aligns with a fiscal sponsor, the sponsor accepts funding on the organization's behalf. It holds onto the money for the organization and will release it once the group chooses to spend it.
This article is brought to you by Vcorp Services – Our experienced entity formation specialists help non-profit corporations with the preparation and filing of documents for corporate charters to the Secretary of State.
"The sponsorship mechanism enables groups to organize around societal concerns without having to incorporate," Jonathan Spack wrote for the website AllBusiness.
"It provides an infrastructure that nurtures new leadership, and it can help start-ups organize to challenge conventional practices and approaches to addressing unmet societal needs. It also offers a way to manage specialized responses to cultural communities. In other words, fiscal sponsorships can be a real boon to the fluidity, innovative capacity and diversity of the community development and nonprofit sector," he added,
When a charitable organization aligns with a fiscal sponsor, the sponsor accepts funding on the organization's behalf. It holds onto the money for the organization and will release it once the group chooses to spend it.
This article is brought to you by Vcorp Services – Our experienced entity formation specialists help non-profit corporations with the preparation and filing of documents for corporate charters to the Secretary of State.
About Vcorp Services LLC
Vcorp Services assists in the creation of new businesses and helps maintain existing businesses in
all 50 states. Quick, accurate and at the lowest rates, Vcorp's knowledgeable and experienced staff
has helped form thousands of new businesses including: LLCs, S-Corporations, C-Corporations,
Partnerships, Non-Profits and Professional Corporations. Vcorp works with entrepreneurs, legal and
tax professionals, as well as real estate experts to set up and maintain businesses across the
country. Vcorp also specializes in helping small businesses to get started, grow and remain in
compliance with federal and state regulations.